ScholarWorks
ScholarWorks
Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection2020
Using Employee-Development as a Solution to Employee Turnover
Using Employee-Development as a Solution to Employee Turnover
Jason Ellis Walden University
Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Business Commons
This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected].
Walden University
College of Management and Technology
This is to certify that the doctoral study by
Jason Ellis
has been found to be complete and satisfactory in all respects, and that any and all revisions required by
the review committee have been made.
Review Committee
Dr. Edgar Jordan, Committee Chairperson, Doctor of Business Administration Faculty Dr. Janet Booker, Committee Member, Doctor of Business Administration Faculty Dr. Patsy Kasen, University Reviewer, Doctor of Business Administration Faculty
Chief Academic Officer and Provost Sue Subocz, Ph.D.
Walden University 2020
Abstract
Using Employee-Development as a Solution to Employee Turnover by
Jason Ellis
MBA, Western Governors University, 2011 BA, University of Connecticut, 2009
Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of
Doctor of Business Administration
Walden University June 2020
Abstract
The failure to retain key employees is an expense that can lead to decreased productivity, profits, and efficiency. The improvement of employee-development practices is integral for business leaders who are focused on reducing an employee’s likelihood of leaving the company.
Grounded in job-embeddedness theory, the purpose of this qualitative multiple case study was to explore the employee-development strategies leaders use to improve employee retention and reduce cost resulting from turnover. The participants included 6 managers from 2 companies in Connecticut who had experience with employee-development policies to improve retention. The data collection process included semistructured interviews and public documents collected from individual participants. Data were analyzed using Yin’s 5-step data analysis method, and 3 themes emerged: effective retention activities, productive employee-development approaches, and positive impression of employee-development approaches. A key recommendation for business leaders is to update the companies employee-development policy by evaluating the productivity of the current approaches and identifying gaps that could be addressed by additional development opportunities. The implications for positive social change include the potential to improve employee morale and decrease levels of stress through the implementation of
development policies to improve retention. Improving the development level of employees may result in promotions or performance bonuses, which can benefit local economies through increased saving, spending, and investment in the community.
Using Employee-Development as a Solution to Employee Turnover by
Jason Ellis
MBA, Western Governors University, 2011 BA, University of Connecticut, 2009
Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of
Doctor of Business Administration
Walden University June 2020
Dedication
I dedicate this study to two women who have been integral toward my pursuit and completion of this doctoral journey. To my aunt, Dr. Kim Carmichael, even going back to the days when you would pick me up from kindergarten and take me to get McDonalds, you always knew how to keep my spirit uplifted. No matter the challenge, you always helped me to believe that the best is yet to come. To my mother, Jaqueline Perry, you believed in me even when I doubted myself, and all I’ve ever wanted was to make you proud. I’ve heard about the joy in your eyes when you shared some of my accomplishments with your friends or relatives, and I’ve always wished for this to be another story you could share. Although both of you are no longer with us, I want to thank you for all the love and support that you have given me throughout this journey.
Acknowledgments
I would like to acknowledge the three chairpersons who have helped and provided me with feedback through my doctoral journey. Dr. John House, thank you for helping me at the beginning stages to create a study that fit my personal and professional interest. Dr. Patricia Fusch, you helped me fine-tune my proposal and motivated me to push toward obtaining IRB approval. Dr. Ed Jordan, you helped me navigate around a huge roadblock within my study and challenged me to make changes that improved my work. Also, a special thank you to my second committee member, Dr. Janet Booker, and university researcher reviewer, Dr. Patsy Kasen, for their help throughout this program.
i
Table of Contents
List of Tables ... iv
Section 1: Foundation of the Study ...1
Background of the Problem ...1
Problem Statement ...2
Purpose Statement ...2
Nature of the Study ...3
Research Question ...5
Interview Questions ...5
Conceptual Framework ...6
Operational Definitions ...6
Assumptions, Limitations, and Delimitations ...8
Assumptions ... 8
Limitations ... 8
Delimitations ... 9
Significance of the Study ...9
Contribution to Business Practice ... 9
Implications for Social Change ... 10
A Review of the Professional and Academic Literature ...10
Job-Embeddedness Theory ... 11
Employee Turnover ... 12
ii
Employee-Development ... 28
Transition ...36
Section 2: The Project ...37
Purpose Statement ...37
Role of the Researcher ...38
Participants ...39
Research Method and Design ...40
Research Method ... 40
Research Design... 42
Population and Sampling ...44
Ethical Research...47
Data Collection Instruments ...48
Data Collection Technique ...51
Data Organization Technique ...53
Data Analysis ...54
Reliability and Validity ...56
Reliability ... 56
Validity ... 57
Transition and Summary ...59
Section 3: Application to Professional Practice and Implications for Change ...60
Introduction ...60
iii
Theme 1: Effective Retention Activities... 62
Theme 2: Productive Employee-Development Approaches ... 64
Theme 3: Positive Impression of Employee-Development Approaches ... 67
Connecting the Findings to the Conceptual Framework... 68
Applications to Professional Practice ...70
Implications for Social Change ...71
Recommendations for Action ...72
Recommendations for Further Research ...73
Reflections ...74
Summary and Study Conclusions ...74
References ...76
Appendix A: Interview Protocol ...110
iv List of Tables
Table 1. Emergent Themes ... 61 Table 2. Retention Activities ... 62 Table 3. Employee-Development Approaches ... 65
Section 1: Foundation of the Study
The retention of employees is important for the productivity of organizations of all types and sizes. Employee turnover has both direct and indirect costs for organizations (Wang, Wang, Xu, & Ji, 2014). Fibuch and Ahmed (2015) estimated that a health care organization could save more than $1.3 million annually by reducing turnover by 1%. In an increasingly competitive marketplace, retaining top employees has become essential for organizational leaders to maintain a competitive edge for their companies’ products and services. Employment for most workers may seem insecure, but for those with specialized skills or talents, the opposite is true (Goldberg, 2014). In addition to conferring competitive advantage benefits, improved retention has a positive effect on employee performance (Lawson & Shepherd, 2019).
The use of employee-development practices at companies in Connecticut in relation to retention was the focus of this study. I sought to determine how employee-development plans may have a positive effect on employee retention. In this section, I present the background of the problem, problem statement, purpose statement, nature of the study, research question, conceptual framework, operational definitions, significance of the study, and literature review.
Background of the Problem
Employees constitute one of the drivers of success for any business. By
developing employees to assume future leadership roles, business leaders can ensure that the cultural substance, ideologies, values, and norms of the organization persist through leadership changes through knowledge transfer (Valentine, 2012). The leaders of
companies attempt to attract or develop high-caliber workers, and retaining these employees requires investment from the company (Dey, 2009).
Turnover is costly to organizations, based on the investment that companies must make to hire, train, and develop employees (Arshadi & Shahbazi, 2013; Bajwa, Yousaf, & Rizwan, 2014). Improvement of retention rates is within a company’s best interest (Fidalgo & Gouveia Borges, 2012). Focusing on and improving employee-development programs could allow businesses to reduce costs while better enabling them to retain top talent.
Problem Statement
Organizational leaders find that high costs are related to the hiring process; therefore, companies have instituted employee-development practices to reduce costs related to external recruitment and to improve morale (Mohd Noor & Dola, 2012). Employees who participate in employee-development initiatives are 18.8% less likely to leave the company within the first 5 years of their employment (Manchester, 2012). The general business problem is that retaining top talent has become challenging for company leaders (Mirji & Mane, 2012), potentially resulting in loss of productivity and revenue. The specific business problem is that some company leaders lack the strategic tools to implement employee-development programs to improve employee retention.
Purpose Statement
The purpose of this qualitative exploratory multiple case study was to explore what employee-development strategies leaders use to improve employee retention and reduce costs due to turnover. Six managers of corporate employees in Connecticut
participated in one initial interview and follow-up interviews to share their employee-development strategies to improve employee retention. Managers provided related documents that supported the information provided during their interviews. The data from this study may impact businesses by providing company leaders with the rationale to create and/or improve their employee-development operations. The information from this study may also provide examples of the successes and failures of
employee-development efforts within other organizations. Application of the findings may have implications for positive social change through an increase in employee morale and productivity and a decrease in turnover that promotes business growth.
Nature of the Study
In order to explore the strategic tools that managers use to implement employee-development programs to improve employee retention, a qualitative method with an exploratory multiple case study design was appropriate. Qualitative research is used to explore and understand how individuals have experienced a phenomenon (Bernard, 2013; Uluyol & Akçi, 2014). The aim of qualitative research is mainly to explore a
phenomenon (Morse, Lowery, & Steury, 2014). Performing data analysis on qualitative data involves dismantling, segmenting, and reassembling data to form meaningful
findings to draw inferences (Rahman & Areni, 2016). Researchers performing qualitative content analysis concentrate on portraying reality by discovering meanings from textual data (Silverman, 2014). I did not make use of large-scale numerical data collection methods because of the smaller scale of the population and sample; thus, quantitative or mixed-method approaches were not appropriate for this study. The purpose of a
qualitative study is not to test a hypothesis or understand a problem through an interpretive and statistical perspective (Yin, 2018). Both the quantitative and mixed methods were insufficient and not appropriate for this study.
Baxter and Jack (2008) described the evidence derived from multiple case studies as robust and reliable. In describing the analytical benefits, Yin (2018) found that
multiple case studies are more compelling than single case studies. Yin (2018) noted that the multiple case study method allows investigators to retain the holistic and meaningful characteristics of real-life events, such as individual life cycles, small group behavior, organizational and managerial processes, neighborhood change, school performance, international relations, and the maturation of industries. Other qualitative designs, such as narrative, phenomenology, and ethnography, were not appropriate for this study because my focus was not on a specific individual or occurrence and did not revolve around a specific cultural group. The investigation of real-life events and perceptions of more than a single case justified the selection of the qualitative multiple case study design.
According to Yin (2018), the case study design is divided into three categories: exploratory, explanatory, and descriptive. Yin noted that the differences between the categories are not always clear; the categories may overlap. In an exploratory case study, the researcher is investigating either what has occurred or what is occurring within the target population (Yin, 2018). The researcher presenting an explanatory case study discusses a phenomenon and describes what it means (Yin, 2018). A descriptive case study is a description of what has happened as a result of a certain phenomenon and may take the form of a narration (Yin, 2018). The exploratory case study method was
appropriate for this study because I explored the tools and strategies that were used to improve retention at companies in Connecticut. The other case study categories,
descriptive and explanatory, were not appropriate for this study because the focus of my research was not describing the results of turnover or presenting an explanation of the meaning of employee-development or retention.
Research Question
The research question for this study was the following: what strategic tools do managers use to implement employee-development programs to improve employee retention?
Interview Questions
1. What employee-development strategies have you used at your company? 2. What changes has your company made with regard to employee-development
since you have been with the company?
3. What strategies have you used to develop employees within your branch? 4. What role have the employee-development efforts of yourself played in the
retention of employees?
5. What role have the employee-development efforts of your company played in the retention of employees?
6. Is there anything additional that you would like to add that could contribute to my research?
Conceptual Framework
In developing the conceptual framework grounding this study, I drew from theory related to employee turnover and methods to improve retention. Job-embeddedness theory provided a conceptual framework to explore what strategic tools managers use to implement employee-development programs to improve employee retention. Job-embeddedness refers to the collection of factors, including employee satisfaction, development, and incentives, that compel employees to stay in their jobs; this concept is important in understanding how to prevent employee turnover (Avery, Wu, & Holley, 2015). In their study on the effect of job-embeddedness on job frustration, citizenship withdrawal, and employee deviance, Avery et al. (2015) stated that the most embedded employees were less likely to experience job frustration and leave the company or organization. In addition, Khattak et al. (2012) found that when leaders focused on job-embeddedness strategies to improve employee morale and job satisfaction, their
employees were more likely to remain with the company. For this study, the focal theme that I drew from job-embeddedness theory was employee-development and its use to improve retention.
Operational Definitions
Employee morale: Employee morale is the measure of the overall viewpoint of employees while at work in the work environment. Happy employees typically have high morale (Hannif & Lee, 2013).
Employee retention: Employee retention is a company’s ability to retain its workforce, usually measured as a percentage of the workforce that remains with the organization from one year to the next (Aruna & Anitha, 2015).
External hiring: External hiring is the process of finding, recruiting, and hiring talent from outside the existing staff to fill open positions (Mohd Noor & Dola, 2012).
Internal development: Internal development is the process of growing, nurturing, improving, or strengthening an organization’s employees using internal resources with the goal of promoting staff and increasing company productivity (Yang, Wan, & Fu, 2012).
Job-embeddedness: Job-embeddedness encompasses all forces that collectively influence employee retention (Khattak et al., 2012). Common forces include training, compensation, career planning, performance appraisal, work environment, and supervisor support (Khattak et al., 2012).
Succession planning: Succession planning is the process of identifying and developing existing employees to fill future positions within the company (Ahmadi, Ahmadi, & Abbaspalangi, 2012).
Tuition reimbursement: Tuition reimbursement is a company tool used to provide employees with company funds to pursue higher education opportunities related to their current job or organizational direction (Manchester, 2012).
Work environment: Work environment includes the physical location of
employment as well as additional factors such as air quality, noise level, coworkers, and office perks or benefits (Gabler & Hill, 2015).
Assumptions, Limitations, and Delimitations
It is important to communicate the importance of one’s work with confidence, but without exaggerating the merits of what one has accomplished (Simon & Goes, 2013). As a researcher, my role was to provide information regarding the purpose, control, and location used to justify the limitations of the study. In this section, I explicate the assumptions, limitations, and delimitations of this study.
Assumptions
Assumptions are factors that may be influential in a study for which no hard data are available to prove or disprove their existence (Mitchell & Jolley, 2012). One
assumption of this study was that the happiness of an employee is due to the efforts of the organization. Although the organization may be using practices that have proven to improve employee morale, employee satisfaction does not derive from only these practices. By gathering data from multiple sources, I assumed that each participant answered interview questions honestly, without preemptive pressure from the employer, and provided only relevant additional artifacts.
Limitations
Limitations are potential weaknesses that can affect a study (Mitchell & Jolley, 2012). One possible limitation of this multiple case study was that the target area only included two companies in Connecticut. These companies had operations across the country, but this study only included data from locations within Connecticut.
Delimitations
Delimitations are restrictions or boundaries imposed to focus the scope of a study (Mitchell & Jolley, 2012). The boundaries used for this study encompassed companies within the state of Connecticut. Companies selected for the study included a national hotel chain and a national insurance provider.
Significance of the Study
Understanding the impact that employee-development strategies have on
employee turnover may influence how businesses achieve success in their industries. The significance of this study resided in its exploration of the strategic tools that managers use to implement employee-development programs to improve employee retention. This section begins with a description of how the results of this study could contribute to business practice, followed by the implications for social change that may result from this study.
Contribution to Business Practice
The importance of employee retention to the success of businesses has been documented in research. Fidalgo and Gouveia Borges (2012) and Pomfret (2014) documented the importance of employee retention and its benefits related to a reduction in turnover cost. Likewise, Sharma (2016) has documented the importance of employee satisfaction on employee retention. The role of employee-development, specifically in relation to employee retention, was the focus of this study. By focusing on employee-development, the results of this study may provide practitioners with a basis for the creation or restructuring of employee-development strategies within their organizations.
Implications for Social Change
This study may have a positive effect on both employees and employers. Employees may receive increased training opportunities to improve personal
development while also becoming more empowered by their organizations. Promotions, pay increases, and a better sense of self are among potential outcomes for employees, which may lead to improved employee morale. Employers may gain workers with an increased knowledge base and a greater likelihood of remaining loyal to their
organization, which may decrease turnover. The results of the study may influence company leaders to develop strategies that increase employee morale and productivity and decrease turnover to promote business growth.
A Review of the Professional and Academic Literature
In the following section, I provide background on recent scholarly research on employee turnover and retention practices in companies of various sizes in different countries and industries. I made use of the Walden University library database to source the professional and academic literature used in this review. The two primary databases searched were Business Source Complete/Premier and ABI/Inform Complete, although other databases such as Google Scholar and Emerald Management Journal were useful as well. The following were keywords used to search the databases: employee retention, employee turnover, retention planning, retention tactics, employee turnover issues, employee morale, development, employee development, and job embeddedness.
The literature review begins with further discussion on job-embeddedness theory, the conceptual framework grounding this study. The next set of literature revolves around
the issue of employee turnover and its impacts on profitability, company work
environment, leadership perception, and employee morale. The next section, on retention tactics, covers different tactics used by companies or suggested by researchers to improve employee turnover. Covered in the final section of this review is a discussion of
employee-development with examples from peer-reviewed sources on the subject. The literature review contains material from peer-reviewed journal articles, webpages, and books. The literature review contains 103 total sources. One hundred one or 98% of the sources in this literature review are peer-reviewed articles. Eighty-eight or 86% of the total sources have a publication date within the past 5 years, from 2015 to 2020.
The entire study also contains material from peer-reviewed journal articles, webpages, and books. The entire study contains 231 total sources. One hundred nine or 87% of the sources in this study are peer-reviewed articles. One hundred ninety-five or 85% of the total sources have a publication date within the past 5 years, from 2015 to 2020.
Job-Embeddedness Theory
Job-embeddedness theory provided the foundational framework to explore what strategic tools managers use to implement employee-development programs to improve employee retention. Job-embeddedness involves a collection of forces that influence employee retention. Nica (2018) found that job-embeddedness is negatively related to the leave intention of employees and noted that job-embeddedness is a significant predictor of employee turnover in organizations. Results from Shibiti (2019) also indicated a
positive relationship between job-embeddedness and retention factors. The concept of job-embeddedness is growing in popularity, and it is important for leaders to understand how to develop/integrate embeddedness practices within their organizations in order to improve retention (Nica, 2018).
Employees who are embedded with their organization are less likely to experience turnover intentions (Mitchell, Holtom, Lee, Sablynski, & Erez, 2001; Narayanan, 2016). Mitchell et al. (2001) cited three critical elements of job-embeddedness: (a) the links between people or activities, (b) the fit of the company community with employees and different aspects of their lives, and (c) the sacrifice as a result of breaking these linkages or fit. Links are described as formal or informal connections between the employee and the company or other employees (Mitchell et al., 2001). The more linkages an employee has, the more that employee is tied to the job and organization (Narayanan, 2016). Fit is described as an employee’s perceived comfort and compatibility within the organization and its environment (Mitchell et al., 2001). By improving employee fit through
recruitment, selection, training, and development activities, companies can experience improvement in retention (Qing, Mayfield, & Mayfield, 2018). Sacrifice is described as the perceived cost associated with forfeiting links and fit by leaving the company
(Mitchell et al., 2001). The more an employee values what would be given up by leaving, the more difficult it is to leave (Qing et al., 2018).
Employee Turnover
Projections of the number of future physicians indicate the need for hospitals to develop strategies to minimize the financial impact of employee turnover. Fibuch and
Ahmed (2015) estimated a shortage of 91,500 physicians in the United States by 2020, positing that by 2025, the shortage would grow to 130,600 physicians. The loss of productivity has an effect when the employee first exhibits turnover intent, and until the employee officially leaves the organization. (Fibuch & Ahmed, 2015). Involuntary
turnover of workers is a significant concern in today’s organizations. Basnyat and Chi Sio (2019) cited increases in recruitment, training, and replacement costs as reasons why employers must retain internal talent and employee knowledge. The reasoning behind Basnyat and Chi Sio’s stance on retention involved the substantial investment incurred by the observed organizations on training, development, and maintenance of employees. Researchers estimated that a health care organization could save more than $1.3 million annually by reducing turnover by 1% (Fibuch & Ahmed, 2015). Turnover of physicians affects not only the bottom line of a hospital but also the quality of service offered to patients. Based on information from previous studies, Fibuch and Ahmed suggested that healthcare organizations incorporate a retention strategy into their overall business strategic plan.
According to Abu and Worku (2019), the workforce is an essential resource that helps companies remain competitive in their given industry. Due to their importance to an organization, retaining efficient and experienced employees is vital for successful
performance (Abu & Worku, 2019). Turnover intention is viewed as a precursor to turnover and is described as an employee’s withdrawal from the organization while actively seeking other career or employment opportunities (Haque, Fernando, & Caputi, 2019). Based on a sample of 283 employees, Abu and Worku found human resources
(HR) practices to have a significant impact on the turnover intent of employees. The reduction of employee turnover in the workforce offers a financial benefit for organizations that have invested in their human capital (Haque et al., 2019).
The competitive job market has caused many organizations to struggle with attracting and retaining a talented workforce (Weis & Rosendale, 2019). As a result, the reduction of employee turnover and the retention of key staff members has become a focus of company leaders (Weis & Rosendale, 2019). The voluntary turnover of key employees is particularly detrimental to company performance and requires special attention (Kim, Tam, Jeong-Nam, & Rhee, 2017). Voluntary workforce turnover can lead to a loss in profits and competitiveness due to project delays and a reduction in product quality (Tam & Le, 2018). Kim et al. (2017) found the turnover intent of employees to be influenced by organizational-level factors, as opposed to those at the interpersonal level. Weis and Rosendale (2019) noted that departments with younger employees tended to experience higher workforce turnover and suggested that managers should be careful to hire workers who fit their positions well to avoid early termination.
As organizations invest resources in the hiring of skilled staff, it becomes
important for leaders to work on retention efforts (Tura, 2020). Iqbal (2016) discussed the high cost incurred by organizations related to turnover as a primary reason for
improvement. According to Landry, Schweyer, and Whillans (2017), the cost to replace an employee ranges from 30% up to 150% of the departing employee’s yearly
compensation. Iqbal identified poor work environment, unclear communication of objectives, and lack of rewards as leading causes of turnover. Tura (2020) proposed
arranging a pleasant work environment, giving promotions, and offering development opportunities as a valuable means of increasing retention probability.
The cost of turnover is not easy to calculate but has a significant impact on the profitability of many organizations (Kiernan, 2018). The 2008 economic downturn forced many organizations to reduce their workforce, but today there is a shortage of skilled labor, which has increased competition for the best employees (Hadi & Ahmed, 2018). Hadi and Ahmed (2018) described attracting, recruiting, and retaining skilled employees as a “war on talent” that is the primary focus of every organization. Kiernan (2018) found that the turnover rate for pilots was 46%, much higher than the average turnover rate of 15% in other industries, and they found the per-capita cost of pilot turnover to be higher as well. Based on this research, Kiernan suggested that controlling costs related to turnover is critical, especially in industries with a shortage of skilled labor.
Employee turnover creates significant consequences within organizations (Garg, 2018; Hale, Ployhart, & Sherpard, 2016). Based on results from engineering firms, Garg (2018) found that turnover had a negative impact on multiple performance-related outcomes. Hale et al. (2016) developed a two-phase model of a turnover event, with Phase 1 being the initial disruption and Phase 2 being the recovery period. Based on their results, Hale et al. found that turnover events lead to an immediate and negative change in branch-level performance in Phase 1 and cause a more prolonged recovery in Phase 2 when a management-level employee leaves a company. Garg also highlighted the importance of retention due to the higher cost of hiring and training a new employee.
Women have struggled to reach leadership positions within many organizations (Johnson & Tunheim, 2016). There is a need for alternative methods for the development and retention of women in the workplace, especially in relation to taking parental leave and maintaining work-life balance. Women who temporarily exit the workplace and then return face challenges that make staying or advancing difficult (Collins & Abichandani, 2016). The process of returning to work demotivates many women, leading to poor performance and an increased likelihood of separation (Collins & Abichandani, 2016). Based on their study of 851 women chartered accountants (CA), Ribeiro, Bosch, and Becker (2016) found various workplace resources that had a negative effect on the turnover intent of women, including financial advancement, growth opportunities, and improvement of work-life balance. Meaningful learning and development can aid in the retention of women in the workplace (Collins & Abichandani, 2016).
Turnover intention is defined as the estimation or probability of an individual leaving the organization in the near future (Dhanpat, Madou, Lugisani, Mabojane, & Phiri, 2018). Lyons and Bandura (2019), noting that turnover may be voluntary or involuntary, suggested that employers focus on the voluntary turnover of talented individuals. There are many unwanted aspects of turnover, including work disruption, productivity loss, loss of institutional knowledge, increased competition, and potential loss of strategic knowledge (Lyons & Bandura, 2019). In their study of 282 call-center employees, Dhanpat et al. (2018) found a negative relationship between work–life
balance and an employee’s intention to leave as well as limited compensation. Emotional burnout was also a significant contributor to an employees’ turnover probability.
Employers that are able to manage the retention of employees effectively can gain a sustainable competitive advantage.
The ups and downs of employee emotions have a complex impact on the work environment in many organizations (Cho, Rutherford, Friend, Hamwi, & Park, 2017). The inability to manage these emotions may lead to health risks as well as increased job stress (Cho et al., 2017). Expanding the role of employees may improve organizational efficiency but may lead to increased employee turnover intention due to job stress (Jamal, 2016). Job stress has a significantly negative effect on job satisfaction and, thus,
employee retention (Sharma, 2016; Yang, Ju, & Lee, 2016). According to Cho et al. (2017), job stress has also resulted in an estimated $300 billion annually in turnover, absenteeism, and medical expenses in the United States.
Employee turnover is disruptive to many organizations due to direct and indirect costs related to turnover and their impact on profitability (Chukwu, 2019). Many findings from researchers on the effects of employee turnover rates have been consistent across different industries (Call, Nyberg, Ployhart, & Weekley, 2015). An increase in turnover rate by one standard deviation was found to be associated with an additional loss of 8.9% in profits (Call et al., 2015). Based on such results, researchers have found that the turnover rate and turnover rate change interact with one another to influence changes in unit performance. Chukwu (2019) stated that the retention of employees requires many elements but suggested that employees are more likely to leave when denied promotion. Managers seek to retain higher quality employees because their loss has greater negative cumulative effects on overall performance (Call et al., 2015).
In Brazil, 19 million jobs were created between 2000 and 2010; however, two-thirds of these jobs ended before 12 months had passed (Ferreira & Almeida, 2015). The importance of maintaining qualified employees for the success of organizations is not a new theme. Ferreira and Almeida (2015) used data obtained from management reports and the information systems of 26 of a firm’s stores to investigate the relationship between employee turnover and performance in a retail setting. In their study, turnover reduced the sales of the firm’s stores and cost the organization between 1.35% and 9.8% of annual gross revenue (Ferreira & Almeida, 2015). These findings confirmed a strong relationship between employee turnover and sales and support results from previous studies. The main problem associated with turnover for many organizations is the
draining of experienced employees (Kundu & Lata, 2017). Due to increased competition for top talent and the need to retain the most productive employees to maintain a
competitive advantage, a company’s workforce has become a valuable strategic asset (Kundu & Lata, 2017).
The high turnover rate within the information technology (IT) industry is a major issue facing organizations globally (Naidoo, 2018). Due to the 15% turnover rate of IT employees in India, the focus of organizations in the IT industry is to reduce the turnover intention of employees in efforts to reduce actual turnover (Sharma & Nambudiri, 2015). The purpose of Sharma and Nambudiri’s (2015) research was to examine the relationship between job–leisure conflict, job satisfaction, and turnover intention for professionals working in IT service provider organizations in India. Researchers collected data from 173 IT professionals from various companies using questionnaires. Sharma and
Nambudiri found that job satisfaction plays a vital role in the turnover process and suggested that those organizations that struggle with high attrition rates should provide employees time to pursue out-of-work interests (Sharma & Nambudiri, 2015). Based on the results of 158 respondents, Naidoo (2018) found that improved employee satisfaction reduced job stress and turnover intent and suggested that higher priority be given to role ambiguity. Researchers have suggested that these findings are relatable across different industries(Naidoo, 2018; Sharma & Nambudiri, 2015).
The availability of other employment opportunities is one cause of employee turnover. The Job Openings and Labor Turnover Survey (JOLTS) of the U.S. Bureau of Labor Statistics (BLS) has gathered data on job openings and labor turnover in order to examine factors that reflect the health of the U.S. and international economies (Bauer, 2015). Data on labor-market turnover, as well as the relationship between job openings and unemployment, can provide valuable information about an economy (Bauer, 2015). As the labor market expands, job availability may increase, and the number of people looking for a job may decline (Bauer, 2015). With the supply of information systems (IS) professionals declining and demand rising, it has become increasingly difficult for
company leaders to hire additional staff. Employee disengagement has costly impacts on productivity, profitability, and stress levels within the workforce (Wolff, 2019). IS professionals are asked to do even more when turnover occurs, often leading to burnout, turnover, and turnover intentions (Armstrong, Brooks, & Riemenschneider, 2015).
Levels of employee engagement are measured by HR professionals and company leaders when attempting to improve retention. Smith and Macko (2014) revealed that an
average of 10.4% of staff resigned from their jobs in 2010, costing the U.K. economy £42bn. Smith and Macko noted that there is limited research known about the impact of employee engagement on employee turnover. They suggested that identifying a causal link would provide a focal point for HR professionals looking to reduce turnover within their organizations. To measure employee engagement and its relationship to turnover, researchers distributed questionnaires to employees of one of the largest food retailers in the United Kingdom. Based on responses from 64 participants, Smith and Macko
concluded that employers looking to make cost savings and reduce turnover would best focus on increasing levels of employee engagement within their organizations. Based on their research, Jungsun and Gatling (2018) found that individuals with a higher level of employee engagement were less likely to leave their organization. Smith and Macko also identified key issues for company leaders to focus on, including communication, the role of the line manager, and listening to employees’ views.
Employees’ perception of their job plays a role in their likelihood of remaining with the organization. In an effort to determine the effects of organization cynicism on employee turnover in the Pakistani banking sector, Khan (2014) collected data from 250 participants using surveys and analyzed that data using SPSS software. According to Erkutlu and Chafra (2017), organization cynicism had a negative relationship to employee satisfaction and suggested that leaders make an effort to improve the psychological capital of the workforce. Cynicism refers to the negative or unethical attitude employees hold towards their jobs and occurs when those employees feel effortless in solving perceived organizational issues (Khan, 2014). Organizations often
find themselves struggling with negative employee reactions such as stress, organization cynicism, and turnover (Mehta, 2016). Khan found that organizational cynicism
decreases both job satisfaction and intrinsic motivation while raising stress levels and turnover intent of the workforce. Organizations could manage cynicism by fostering an open and honest atmosphere, providing realistic goals, and promoting cooperation among individual employees. A positive change could occur in cynical employees through training and interventions (Khan, 2014).
High turnover is a major challenge that can lead to undesired consequences for a company, including the loss of a talented employee, an increase in labor replacement cost, and morale and motivation issues (Jnaneswar & Ranjit, 2019). A decrease in employee turnover leads to cost savings for organizations by reducing the costs involved in the training of new workers and rebuilding internal knowledge or employee
relationships (Faulk & Hicks, 2016). According to Jnaneswar and Ranjit (2019), leaders should be managed to keep turnover at an optimum level and suggest a low turnover rate is always good for organizations. Employees that feel valued by the organization improve morale, reduces turnover and knowledge loss, and increases company efficiency and effectiveness (Faulk & Hicks, 2016). An excellent organizational climate also ensures low turnover and should be a focus of management (Jnaneswar & Ranjit, 2019). Retention Tactics
Voluntary employee turnover has a substantial negative impact on company profits, valuable organizational knowledge, and internal skillset, especially in the technology sector due to their expensive IT labor force (Kessler, 2014). Kessler (2014)
collected data using surveys to present the reasons for voluntary turnover of employees in Israel from the IT employees` perspective. Kessler found job satisfaction to have a
negative effect on voluntary turnover and indirect effects on emotional variables, commitment, motivation, and loyalty. Based on these findings, organizations should develop ways to prevent voluntary turnover by implementing strategies to improve job satisfaction. Leider, Harper, Shon, Sellers, and Castrucci (2016) correlated job
satisfaction with pay satisfaction, organizational support, and employee involvement. In addition, Leider et al. suggested more research to understand the determinants of job satisfaction and how to retain employees based on the expectation of increasing voluntary turnover in the coming years. Lu, Lu, Gursoy, and Neale (2016) highlighted the
influence of employee dedication on satisfaction and turnover intentions. Amongst management-level employees, work engagement factors did influence job satisfaction and reduced turnover intentions.
Talent management activities are a means to improve the retention of skilled employees and reduce the turnover intent within a workforce (Johennesse & Chou, 2017). Efficient and loyal employees are the most valuable asset of an organization, which makes it imperative for employers to invest in talent management activities (Johennesse & Chou, 2017). Although attracting skilled employees is necessary, it is more important for company leaders to retain the employees they have already invested in (Worku, 2018). Using data from 297 employees, Worku (2018) suggested that company leaders focus on remuneration, job satisfaction, and organizational commitment to retain key employees. Based on their research, Johennesse and Chou (2017) recommended three
talent management activities that will aid in the retention of the most talented workers; remuneration, training, and business coaching.
The pay or other compensation-related benefits that an employee receives for their service is called remuneration (Pregnolato, Mark, Bussin, & Schlechter, 2017). Shabane, Schultz, and van Hoek (2017) collected questionnaires from 275 employees to determine the relationship between satisfaction, remuneration, and retention. According to Bussin and Brigman (2019), organizations could benefit from understanding the remuneration preferences of their workforce in order to retain the most talented employees. Pregnolato, et al. (2017) described benefits, performance recognition,
remuneration, and career opportunities as the most important elements that would lead to an employees’ retention. Shabane, et al. (2017) found the remuneration received by an employee to have a significant mediating impact on their satisfaction and, thus, turnover intent. Bussin and Brigman (2019) found no significant differences in the remuneration preference of workers based on age, years of service, or performance but noted
differences between preference based on gender.
Although the approach may vary from company to company, all companies strive for the same result: more employee motivation and retention and less employee
dissatisfaction and turnover (Kassar, Rouhana, & Lythreatis, 2015). According to Abate, Schaefer, and Pavone (2018), the most satisfied employees reported less job burnout and are more likely to remain with the company. To examine the effects of cross-cultural training programs on the turnover and satisfaction of employees, Kassar et al. (2015) distributed and collected 96 questionnaires from expatriate employees from 10 different
companies in five countries. Kassar et al. found that company inclusion of cross-cultural training programs did lower employee turnover and improved employee satisfaction. Doe and Thomas (2018) also noted the positive effects of cross-cultural training techniques on employee performance and job stress. Using the U-Curve adjustment theory, Lawson and Shepherd (2019) highlighted five elements that should be integrated into cross-cultural programs to improve performance and retention. The five elements included anticipatory adjustment, cultural distance, cultural congruency, methods, and cultural diversity training (Lawson & Shepherd, 2019).
There are benefits to including fun activities in the workplace to improve
retention (Joyce & Barry, 2016). The role of fun in the workplace is significant and offers a means of escape for employees, which improves engagement, satisfaction, and
performance (Plester & Hutchison, 2016). According to Jorge and Sutton (2017), fun included physical, social, mental, and blended workplace activities. Plester and Hutchison (2016) found empirical connections between workplace fun and employee retention and suggest the inclusion of various fun activities offers an organization the opportunity to stimulate high engagement. Hussain, Qazi, Ahmed, Streimikiene, and Vveinhardt (2018) found that a playful environment led to employees with higher motivation, engagement, and retention. Joyce and Barry (2016) included fun as one of their six recommendations to successfully hire and retain millennial employees.
The U.S. Equal Employment Opportunity Commission (U.S. EEOC) provides tips to improve retention, which include the improvement of advancement and development opportunities. Agencies can ensure that all employees have equal opportunities for
advancement by creating and funding individual development plans and career
development programs. Agencies can include these programs in their succession plans to ensure that they identify and develop well-qualified candidate pools (feeder pools) for their senior grade levels (U.S. EEOC, 2019). Due to the concerns of increasing staff shortages in the future, Tursunbayeva (2019) suggested the strengthening of Human Resource practices to mitigate the problem. Longoni, Luzzini, and Guerci (2018) found human resource management practices to have a positive impact on financial
performance and a mediating impact on the relationships between leadership and employees.
Although an estimated 70% to 90% of employees personalize their workspaces, very few researchers have determined how personalization affects employees (Bryon & Laurence, 2015). Bryon and Laurence (2015) used interviews with individual employees as well as workspace observations to gather data on the effects of personalization on employee behavior. Not all items used to personalize workspace communicated identity, but in general, personalization items increased employee’s comfort and happiness within their workspace (Bryon & Laurence, 2015). Bangwal and Tiwari (2019) noted that employee satisfaction depended on various elements of workspace design and suggested that the employee perceptions of workspace design elements deserve special attention. Based on their findings, Bryon and Laurence suggested that it would be unwise for organizations to place stringent limits on employee personalization due to the identified benefits. Personalization helps an employee regulate their emotions, directs their
activities toward goal-related pursuits, and builds and develops relationships with others (Bryon & Laurence, 2015).
The opportunity to speak is only part of the communication process between employees and supervisors. Employees also react to whether they believe the supervisor as actively listening to their statements (Lloyd, Boer, Keller, & Voelpel, 2015). In their 2-part study on the impact of supervisor listening on emotional exhaustion, turnover intent, and citizenship behavior, Lloyd et al. (2015) found supervisors’ listening efforts reflected the perceptions that employees have of their supervisor’s listening. Furthermore, these perceptions were associated with emotional exhaustion, citizenship behavior, and turnover intent. Nordin, Romeo, Yepes-Baldó, and Westerberg (2018) noted that
managers play an important role in the creation of a work environment that is attractive to employees. The manager’s role is to foster an environment that is reflective of the
organizational culture (Nordin, et al., 2018). Supervisor listening encourages two-way communication and elicits speaker self-disclosure (Lloyd et al., 2015). The outcomes that arise from the perception of supervisors failing to listen actively to their employees; emotional exhaustion, citizenship behavior, and turnover, influence organizational performance, highlight the importance of these results for organizational success.
The retention of talented employees is a difficult predicament faced by company leaders, Idris (2014) stated that due to the competitive nature of the business environment in developing countries. Because simply increasing financial benefits is an unsustainable retention tool, Idris performed personal interviews with local bank managers to determine the effectiveness of different flexible working practices on retention. Based on data
recovered from the eight participants, Idris found flex time as a popular and effective benefit used in Malaysian banks to retain employees while part-time and job-sharing tactics were least impactful. “Impact of Perceived Flexible” (2019) found the use of flexible work options to increase job satisfaction, reduce work-related stress, and improve retention of IT employees in India. Based on the results of 203 questionnaires, “Impact of Perceived Flexible” (2019) recommends that managers invest in communication and training that demonstrate the use of flexible work options. Idris noted that elements of organizational culture, particularly a lack of trust and a low sense of accountability, posed the most significant obstacles in implementing flexible work practices.
The need to retain and develop high performing employees is a major concern for organizations today (Patidar, Gupta, Azbik, Weech-Maldonado, & Finan, 2016;
Tamunomiebi & Okwakpam, 2019). Succession planning enables leadership continuity and the retention of inherent knowledge that is integral to the success of many
organizations (Phillips, 2019). Based on a sample of 22,717 hospital observations, Patidar, et al. (2016) found a positive relationship between the presence of succession planning and the financial performance of the hospitals. Several factors contribute to an employees’ intention to remain with a company and pursue leadership opportunities. According to Phillips (2019), the development and implementation of succession planning leads to the creation of traits and abilities of future organizational leaders.
The relationship between HR practices and employee citizenship behavior plays a role in the retention of the workforce. Chang, Nguyen, Kuo-Tai, Kuo, and Lee (2016) tested the existence of a relationship between four HR practices and the citizenship
behavior of employees. Employees with a positive impression of their recruitment and career development were more likely to exhibit citizenship behavior (Chang, et al., 2016). Interpersonal citizenship behavior (ICB) is all social and professional interactions
between employees and supervisors. Dachner, Ellingson, and Tews (2017) sampled 429 employees to explore the relationship between ICB and turnover intention. As ICB relationships improve, the likelihood of an employee voluntarily leaving the company decreased (Dachner, et al., 2017). Both Chang et al. (2016) and Dachner et al. (2017) suggest that employees demonstrated a positive perception of employer practices geared towards the improvement of citizenship behavior.
Monetary rewards are a positive determinant of employee morale and turnover intention (Mustafa & Ali, 2019). Aguinis, Joo, and Gottfredson (2013) discussed how and why companies should use a monetary reward-based system. Money has always been a positive motivator for employees, but money can be difficult for a company to give employees more money in order to retain them. Aguinis et al. presented a plan on how a monetary reward system should be constructed using performance as a guideline that included five principles: (a) define and measure performance accurately, (b) make rewards contingent on performance, (c) reward employees in a timely manner, (d) maintain justice in the reward system, and (e) use monetary and nonmonetary rewards. Employee-Development
Based on the rapid changes within the business environment, it is the
responsibility of both employees and management to make the necessary workplace changes to maintain a competitive edge (Chaubey, Kapoor, & Negi, 2017). Leaders
within organizations are aware that talented human resources are valuable resources, and if they can manage these resources effectively, trained employees will produce a
maximum return on investment (Saadat & Eskandari, 2016). In the study designed to examine the perception of employees regarding the effect of training within
organizations, Chaubey, et al. (2017) collected data from 148 participants from various service organizations by using surveys. The largest percentage of employees expressed a positive perception of training and suggested that these programs enhanced the
competency, knowledge, and interpersonal skills of the workforce (Chaubey, et al., 2017). Vooijs, Bossen, Hoving, Wind, and Frings-Dresen (2018) found participation in training programs to have a positive relationship with the knowledge and skills of the workforce. In addition, employees offered training expressed an increased level of loyalty to their employer, a statistic that could improve company retention rates.
The training of employees is an aspect of making an organization profitable (Ameeq-ul-Ameeq & Hanif, 2013). In their study on the impact of training on employee-development, Ameeq-ul-Ameeq and Hanif (2013) found that employee training did have a positive effect on both employee attitudes and perception. From the 20 questionnaires used on employees, Ameeq-ul-Ameeq and Hanif found that 70% of employees felt training helped them to be more efficient and increased their interest in their jobs. Overall, Ameeq-ul-Ameeq and Hanif suggested that the training of employees does play an integral role in the performance and perception of an organization. Training and development programs have a positive effect on the overall cognitive skills of a workforce (Khan, Bashir, Abrar, & Saqib, 2017). Based on their study of 254 banking
employees, Khan, et al. (2017) found that an increase in the cognitive skills of the workforce leads to improved creativity and organizational performance.
In regards to the cost benefit theory, Zhong and Wu (2020) postulated that
company financial performance diminishes as an organization incurs costs resulting from turnover. Organizational success and growth are dependent on the retention of key employees, which is why management must focus on a mixture of pay increases and training programs to improve satisfaction (Tadesse, 2019). According to Vetrakova and Benova (2017), although organizations possess capital and advanced equipment, they are not able to fully able to realize the benefits of these resources without the continuous development of their workforce. The investment in employee-development was found to have a direct relationship to the reduction of the voluntary turnover rate in most
organizations (Vetrakova & Benova, 2017).
Workers in an organization are always in need of training and development programs to improve their abilities and sufficiently perform in their roles (Jayakumar & Sulthan, 2014). In their study to determine the employee perception of such programs, Jayakumar and Sulthan (2014) concluded that training and development programs had enhanced productivity, motivation level, and morale of employees. In a discussion of talent management and its relation to employee engagement, Deepika and Sampurna (2018) found efforts that focused on increasing the internal skills of employees aided in employee morale and productivity. Deepika and Sampurna (2018) advised leaders of organizations to develop and refine talent management activities to engage employees and improve retention. In addition, Jayakumar and Sulthan suggested the continued
improvement of training and development would have a positive effect on the organization overall.
Job rotation is a type of on-the-job training where an employee is encouraged to acquire knowledge by providing coverage in different aspects of employment for that profession (Hodgson, Al Shehhi, & Al-Marzouqi, 2014). Shah, Shaikh, and Pirzada (2018) found job rotation as an effective way to maximize employee performance and improve the financial results of the firm. Hodgson et al. (2014) used online surveys to collect data from 100 employees in the United Arab Emirates (UAE) organizations to study the effects of job rotation on employees in organizations. Researchers suggested that job rotation has a significant effect on employee performance and satisfaction in United Arab Emirates organizations (Hodgson et al., 2014). By affecting employee satisfaction, it is reasonable to suspect that job rotation could affect an employee’s turnover intent.
Succession planning is important because it can take years to develop effective senior managers (Pandiyan & Jayalashmi, 2016). The benefit of effective succession planning programs is the retention of talented employees and overall organizational culture (Tamunomiebi & Okwakpam, 2019). Moore (2018) noted that the use of succession-planning techniques led to the preservation of organizational culture and intellectual capital necessary for company success. By developing the employees within the company to assume future leadership roles, the cultural substance, ideologies, values, and norms remain throughout leadership changes. The development and implementation of a leadership succession plan is integral to the achievement of business continuity
(Pandiyan & Jayalashmi, 2016). Although company cultures will evolve due to economic, environmental, or competitive changes, Moore postulated that leadership continuity would aid in the retention of talent and reduction of turnover related costs.
Human capital consists of employees, their congenital and acquired knowledge, skills, abilities, attitudes, and competencies. Human capital can directly affect the success of a company. In order to create a sufficient supply of capital, company leaders must invest in the training and development of their workforce (Sirkova, Alitaha, & Ferencova, 2014). Based on analysis from Sirkova et al., employees did have a positive outlook on further development and its associated benefits (improved knowledge base, raises, and promotions). An improved knowledge base or certifications are associated with lower employee turnover rates (Dineen & Allen, 2016). Improved communication and a better understanding of supervisor decision making as likely benefits of increased investment in human capital (Sirkova et al.).
Kapil and Rastogi (2017) described job-embeddedness as the construct that explains why employees choose to remain with their organizations. Kapil and Rastogi also noted that the most extremely embedded employees exhibited better job performance than their peers. In their study on job-embeddedness, Dechawatanapaisal (2018) used data retrieved from 1028 accountants in Thailand to determine which job-embeddedness Human Resource practices had a positive effect on employee retention. Practices
observed included performance appraisals, monetary incentives, and career development. Dechawatanapaisal found monetary rewards and availability of career development opportunities to have the best impact on employee retention. Based on the results from
their sample of 365 IT professionals, Kapil and Rastogi found a significant relationship exists between job-embeddedness and the engagement and performance of the workforce.
In order to maintain organizational citizenship, company leaders need to shift their focus to training and developing current employees (Adom, 2018). In a study concerning the effects of training and development on organizational innovation, Sung and Choi (2014) hypothesized that organizations that increased their investments in training and development would benefit from improved, innovative performance and retention. Kontoghiorghes (2016) found a high correlation between retention and the extent to which the organization has a change-, quality-, and technology-driven culture. The training and development investments of an organization create a climate for
constant learning that facilitates the exchange of knowledge and ideas among employees (Sung & Choi, 2014). Researchers collected data from 260 Korean companies across different industries and analyzed using structural equation modeling (SEM) practice. Sung and Choi found that increased organizational spending on internal training structures resulted in the increased innovative performance of the overall company and increased organizational commitment. This relationship was more influential in
organizations in the most innovative industry climates.
Employers expect their investment in training to improve organization
productivity by raising the capacity of the organization’s collective skills, an assumption that relies upon workers remaining within the investing organization (Kennett, 2013). Employers have different views on the relationship between employee-development and turnover (Kennett, 2013). Some employers felt reluctant to invest in training due to the
fear that employees could leave because of their new skills. In contrast, other employers felt development, as a retention strategy, could build organizational capacity. Kennett found that those organizations that adopted team development models had the lowest employee turnover due to employees gaining a sense of belonging, organizational commitment, and job satisfaction by working together. Tura (2020) found the training and development of a team to have a significant impact on turnover intention and also suggested encouraging employees to participate in decision making and arranging a productive working environment. In addition, Kennett found that Individual development often led to high employee turnover when coupled with perceived job alternatives, a lack of internal growth opportunities, or when taken on by the employee self-directed.
Tuition reimbursement is a relatively low-cost HR tactic that has a positive impact on the productivity and retention of an employee (Spencer, Gevrek, Chambers, &
Bowden, 2016). According to Spencer, et al. (2016), the amount of tuition reimbursement was also a significant predictor of increased productivity and intention to stay. Spencer et al. (2016) also suggest maximizing tuition reimbursement in organizations where
employee retention and productivity are the focus. Xiang and Xu (2019) discussed the benefits of tuition reimbursement, a common employee-development technique, on retention compared to other HR tactics. According to Xiang and Xu, research suggests that tuition reimbursement plays a critical role in attraction, retention, and motivation yet; not all companies are able to offer this benefit.
With a focus given to organization performance, Mirji and Mane (2012) gathered information on a Business Process Outsourcing (BPO) firm to determine the issues
related to employee retention at the firm as well as uncover patterns of the problem. Based on the current competitive climate, a skilled workforce is an asset that an organization must use to its advantage. The researchers found employee-development opportunities to be a significant driver of an employee’s decision to stay or leave their company (Mirji & Mane, 2012). Mustafa and Ali (2019) explored the perception of monetary rewards and non-monetary rewards on employee motivation and turnover intention. Based on survey data from 100 bank employees, Mustafa and Ali found monetary rewards and competency development to influence turnover intention positively.
Developmental training is a useful tool that improves employee skills and productivity and results in enhanced morale and retention (Gowthaman & Awadhiya, 2017). Training and development are vital for the sustainable growth of companies that are driven by employee operated technology (Gowthaman & Awadhiya, 2017).
Organizations that prioritize employee-development retain more highly skilled workers, which creates a strong talent pipeline and sustainable knowledge base (Letchmiah & Thomas, 2017). Letchmiah and Thomas (2017) found culture, purpose, development opportunities as influential retention factors and suggest leaders focus on formal strategies based on employee needs. The retention of highly skilled workers is cost-effective and can lead to organizational success (Letchmiah & Thomas, 2017). Gowthaman and Awadhiya (2017) also noted that training and development activities improve the motivation of the workforce.
Transition
Existing literature related to employee or workforce retention is diverse.
Researchers present different solutions to the problem of turnover that leads to conflicting data between industries that validates the need for this study of this particular industry. The information presented in Section 1 included the foundation for exploring the
relationship between employee-development and employee retention within Connecticut companies. Topics discussed in the literature review were (a) employee turnover, (b) retention tactics, and (c) employee-development. The review included recent scholarly research on employee turnover and retention practices in companies of various sizes in different industries and countries.
Section 2 began with a further description of the research method and design, population and sampling, participants, and data collection instruments and techniques used in the study. This section also included a discussion of data analysis techniques, reliability, and validity. The focus of Section 3 was a discussion of application to professional practice and implications for change. Study results, a section on study reflections, and a conclusion were also included in this section.
Section 2: The Project
Section 2 begins with a restatement of the purpose of this study from Section 1. I then describe my role as the researcher and explain who the participants were, where they were from, and why they were appropriate for this study. Next, I discuss the research method and design, followed by population and sampling. I make a statement concerning measures taken to ensure ethical research before discussing the data. I describe the instruments and techniques used to collect data, as well as the processes of data
organization and analysis. Section 2 ends with a discussion of the reliability and validity of the study.
Purpose Statement
The purpose of this qualitative exploratory multiple case study was to explore which employee-development strategies leaders use to improve employee retention and reduce cost due to turnover. Six managers of corporate employees in Connecticut participated in one initial interview and follow-up interviews to share their employee-development strategies to improve employee retention. Managers were asked to provide related documents that supported the information provided during their interviews. The data from this study may impact businesses by providing company leaders with the rationale to create and/or improve their employee-development operations. This study may also provide examples of the successes and failures of employee-development efforts within organizations. Leaders applying the findings of this study may promote positive social change through an increase in employee morale and productivity and a decrease in turnover to foster business growth.